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School

University of Toronto Scarborough

Department

Management (MGT)

Course

MGTA01H3

Professor

utsc

Semester

Winter

Description

Chapter 7
Management Process:
 Management: is the process of planning, organizing, leading, and controlling an enterprise’s finanacial,
physical, human and information resources to achieve the organization’s goals of supplying various
products and service.
 For example: CEO of Walt Disney Productions. Actors are not managers they play a role in the movie
they do not follow the four functions of management.
Planning:
 Planning has three main components: Managers determine the firm’s goals, they develop a
comprehensive strategy for achieving those goals, and they design tactical and operational plans for
implementing the strategy.
 Planning process has five basic steps:
1. Goals are established for the organization. For example a commercial airline may set a goal to fill
every seat with a passenger every flight.
2. Managers identify whether a gap exists between the company’s desire and actual position. For
example a year-end financial analysis will reveal whether a company met its profitability
objectives.
3. Managers develop plans to achieve the desired objectives. Objectives indicate what results are
desired, while plans indicate how these objectives are to be achieved.
4. The plans that have been decided upon are implemented. This is the point in the planning
process where thinking is converted into action
5. The effectiveness of the plan is assessed. This requires comparing actual results with planned
performance.
Organizing:
Organizing: the portion of a manager’s job concerned with mobilizing the necessary resources to
complete a particular task.
Leading
Interaction between manager’s and their subordinates to meet the firm’s objectives is Leading.
Managers have the power to give orders and demand results.
Managers motivated their employees to bring success to the company.
Controlling:
Controlling: is the process of monitoring a firm’s performance to make sure that the firm is meeting its
goals.
Establishing standards
Measure
Performance
Does measured
Continue current Adjust performance
activities performance or standards
match standard If a company wants to increase its sales in the next 10 years to about 20%, then an appropriate
standard might be an increase of 2% a year. If the end of the first year the sales have increased to 2.1%
then the company is doing fine and will become successful but if the company received an increase of
1% in sales then the company may rethink its plan.
Types of Managers:
Divide managers by their level of reasonability or by their area of responsibility.
Levels of Management:
1. Senior Managers: The small number of executives who guid